Sygnum, the world's pioneering digital asset bank, has announced a groundbreaking private debt asset token in collaboration with Float, a Stockholm-based Capital-as-a-Service company. Fasanara Capital, one of Europe's largest fintech credit funds, serves as the primary lender in this venture.
This novel asset token offering provides clients with direct access to a distinctive investment opportunity: exposure to a diversified portfolio of private loans extended to European small and medium-sized enterprises in the fields of Software as a Service (SaaS) and technology. The token has an 18-month maturity period and offers a fixed annual interest rate of 14 percent, with full recognition of token and investor rights in compliance with the Swiss Distributed Ledger Technology (DLT) legal framework.
It is anticipated that tokenized private debt markets will reach a value of USD 3.5 trillion by 2030. The Float Token, a private debt asset token introduced by Float in partnership with Sygnum Bank on the Polygon blockchain, is exclusively accessible to Sygnum clients, presenting a unique opportunity to invest in a private debt portfolio alongside Fasanara Capital, a leading institutional fintech credit fund manager. The token's 18-month maturity comes with a fixed annual interest rate of 14 percent and quarterly interest payments, allowing investors to gain exposure to a diverse array of loans issued to European SaaS and technology businesses.
Investors in the Float token enjoy the added benefits of on-chain proof of ownership, ease of transferability, lower transaction sizes, and liquidity within Sygnum's secondary market, SygnEx. The token and investor rights fully adhere to the Swiss DLT legal framework.
Fatmire Bekiri, Head of Tokenisation at Sygnum, highlights that the Float Token signifies the first instance where a high-yield private market instrument is made widely accessible to investors through tokenization. This project underscores Sygnum's strategic commitment to facilitating easier access and investment in private market assets, with more such issuances expected in the future.
Fasanara Capital, a major player in the tech-enabled credit fund management sector, serves as the primary lender, managing over USD 4 billion in assets under management (AuM) across fintech strategies, including one of the oldest and largest global digital asset market-making funds. Francesco Filia, CEO and Co-Founder of Fasanara Capital, believes that tokenized debt markets are on the brink of mainstream adoption, with expectations of the asset class reaching a valuation of USD 3.5 trillion by 2030. He emphasizes the significance of this partnership in advancing tokenization and expresses dedication to bringing more debt onto blockchain. Fasanara Capital is proud to support the integration of Float's high-performing debt portfolio into Sygnum's market-leading ecosystem.
Cedric Notz, CEO and Co-Founder of Float, underscores the strength of Revenue-Based Lending (RBL) to European SaaS businesses, with a proven robust risk-return profile that has withstood challenging market conditions over time. The issuance of the Float Token, the first private debt asset token, required close collaboration among experts in lending, debt financing, and tokenization to bring it to life. Such interdisciplinary and innovative partnerships are poised to revolutionize traditional finance in the future.
In 2020, Sygnum became the pioneer in offering a regulated, end-to-end tokenization solution through Desygnate, a primary market issuance platform, and SygnEx, a secondary market trading facility. Through Sygnum, investors gained access to asset classes that were previously perceived as difficult to access, such as private debt markets, in a direct, fully compliant, and fractional manner.